How the Mine Industry is Polarizing the Philippines

Mining investment has surged in the Philippines in the past two decades but reactions are mixed as to whether the industry’s impact has been beneficial or destructive to the country.

The passage of a mining law in 1995, which provided generous tax privileges to the sector, was greeted by local and foreign companies as a great incentive to do business in the Philippines. Hundreds of mining applications were approved by the government, which led to a boom in mining operations across the country.

Both the government and the business sector claimed that the revitalized mining industry contributed to the local economy in terms of jobs created, tax revenues, infrastructure development, community assistance, and export earnings. As mining firms continued to grow, they also became influential players in local politics by providing hefty campaign funds to political parties and dynasties.

But due to the inherent pollutive risk of mining operations, an anti-mining constituency led by environmental groups emerged and expanded over the years. They were supported by church groups, activists, and even some local governments, which passed ordinances and resolutions imposing a moratorium on open pit mining and metallic mining in their jurisdictions.

The national government responded by authorizing the Department of Environment and Natural Resources (DENR) to process and monitor mining applications in order to ensure that mining operations will lead to sustainable development. It also ordered the military to secure mining sites aside from allowing mining firms to manage their own armed personnel in remote communities.

The DENR eventually became a confused agency because while its principal mandate is environmental protection, it’s also responsible for allowing large-scale open pit mining in watersheds and other critical habitats.

Meanwhile, the decision to militarize the mining sites led to the displacement of indigenous peoples, harassment of activists opposing mining, and the intensification of conflict in many provinces, especially in the northeastern part of Mindanao, the country’s most active mining hub.

As the destructive effects of mining on the environment became more palpable in recent years, the anti-mining movement became a broader coalition uniting various stakeholders. But the pro-mining lobby countered by enumerating the monetary contributions of the mining sector to the government. They also asserted that most of their members practice “responsible mining.”

That mining is a strategic industry necessary to propel the country’s economy is acknowledged by many. But a growing number of people are convinced by the argument that it does more harm than good to the country’s future.

These divergent views on mining are reflected inside the Cabinet of the Philippine government. President Rodrigo Duterte was backed by some miners in the 2016 elections but he chose an anti-mining crusader as his DENR secretary.

In March, the confirmation of Gina Lopez as DENR secretary was deferred by members of Congress because of strong opposition from mining interests. Lopez was criticized for ordering the suspension of more than a dozen mining sites that have been found guilty by the DENR of violating the country’s environmental laws. Thousands of mine workers protested the “arbitrary” DENR ruling.

Lopez assured the mine workers that alternative livelihoods will be provided by the government. She also downplayed the economic impact of closing down some mining sites in the country.

Lopez found support from green groups and activists. But so far her strongest ally is Duterte himself, who has consistently declared that he supports the mining audit being done by the DENR. He dismissed the warning of some analysts about losing tax revenues if mining sites are closed by assuring the public that there are other ways of raising funds without destroying the environment.

In the past, Duterte accused big mining companies of acting like oligarchs who are collaborating with foreigners. Duterte’s statement could be a hint of his intention to promote resource nationalism, but recently he revealed his other reason for supporting the suspension of some mines in the country. He said that big mine owners are funding alleged plots to destabilize his government.

Whether or not Duterte is sincere in backing DENR’s mining audit, environmental groups have found a solid cause to support the reform agenda of the government with respect to mining. Duterte badly needs this support since his government is being pilloried both at home and abroad for the deteriorating human rights situation in the country.

But if Duterte’s accusation against mine owners is true, then it is further proof of how mining money is causing bitter divisions in the country.